The tech giant has eliminated 10% of its top management positions, which is a serious blow to employees in those positions. According to Business Insider, CEO Sundar Pichai announced the news during a meeting for all employees on Wednesday.
Sundar Pichai stated this rationale
According to Sundar Pichai, Google is implementing layoffs to enhance productivity, streamline processes, and increase efficiency. According to Business Insider, these layoffs impact vice president, manager, and director-level positions, which are in line with the company’s shifting business priorities.
According to a Google representative, some affected management positions have been eliminated, while others have been converted to non-management roles. The action is a component of Google’s ongoing efficiency plan. CEO Sundar Pichai announced the plan in September 2022 to achieve a 20 percent increase in efficiency.
Google-ness
Pichai also discussed the concept of “Googleness” at the meeting, emphasizing how it embodies the company’s principles and culture. Pichai stated, “For today’s Google, Googleness means time to update,” underscoring the need for the business to change in order to be prepared for upcoming difficulties.
Over the past two years, Google has concentrated on boosting efficiency. Pichai declared in September 2022 that the company wanted to increase its efficiency by 20%. A few months later, in January 2023, Google announced historic layoffs that resulted in the loss of roughly 12,000 jobs. This shift toward efficiency coincides with heightened competition for Google in the artificial intelligence (AI) space, as competitors like OpenAI are launching cutting-edge solutions that are undermining Google’s dominance in crucial domains like search.